![]() To meet the increased requirements of software development, many car makers are establishing new organizations or reforming existing ones. Since manufacturers cannot deliver all future requirements in-house, they will need to continuously validate internal capabilities and capacities and assess the success of external sourcing agreements for innovation, competitiveness and time-to-market. The new car software architecture will focus on enterprise IT experiences like standardization, integration, scalability and open architecture. In many engineering sourcing models of the past, the hardware or unit provider offered the control software as a bundle, and software development focused on the physical components. This includes sourcing software development and applications in different depths and breadths. Update Your Sourcing Strategyĭifferent sourcing models and implementations have been critical to enterprise IT for many years now. ![]() Car makers are finding the benefits of establishing partnerships with these providers that allow them to build new business models. These companies can deliver solution elements to map across the industry’s connected, autonomous, shared, electrified (CASE) dimensions. They are no longer only enterprise IT providers for towers like server, storage and network services they are becoming solution providers for automotive IT transformation and digitization. ![]() Many enterprise IT service providers have invested in recent years in the extension of their capabilities for design, engineering, user experience and technology specifically for the automotive industry. As the investments in the future will be huge, the IT organization has to understand the requirements and find scalable, competitive and cost-efficient solutions in-house or in the market. One of the major challenges is to translate the engineering requirements and its specific glossary into IT requirements, technology and solutions. Some companies have already established organizations to bring both sides together. Although the two IT organizations have been separated in the past, this will no longer suffice. The new functionalities and user stories will require an end-to-end flow of data, functions and connectivity. New car software will combine engineering software components and backend enterprise IT components. What are the key areas the executives should address? Bring Enterprise IT and Engineering IT Together Still, the car and the automotive business model are changing – and executives need to be prepared to build a support environment for the success of the industry’s transformation. It has been a capability in most manufacturers’ enterprise IT for decades and an important part of the electronic components systems in cars programmed by hardware suppliers and OEMs. With all this focus on software development and the challenges it brings, the good news is that the topic itself is not new. Based on new services and revenue models, manufacturers are using “user stories” to develop software and solutions that provide new user experiences for drivers and additional value streams for themselves. The new business model automotive manufacturers must build to provide mobility requires a strong connection between the car and user data and the data and apps that make the car ecosystem run. The Automotive Business Model Relies on Connectivity For automotive manufacturers, this means IT and engineering are converging. The heart of all these solutions and applications is the car operating system. Product-related changes, including autonomous driving, electrification, connected and shared mobility, are heavily reliant on software solutions based on new technology. This strategy is driven by two fundamental changes in the industry: 1) the product – in this case, the car – is being completely redefined and 2) the business model for automotive manufacturers is changing from selling cars via dealers to providing mobility to customers. It is no secret that players in the automotive industry are investing heavily in their software development capabilities.
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